|Bid||0.00 x 3100|
|Ask||0.00 x 2200|
|Day's Range||91.74 - 92.87|
|52 Week Range||80.61 - 96.06|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.90|
|Expense Ratio (net)||0.13%|
Many investors watch the headlines like hawks, but moves in the market aren't as dependent on those as many people think. More often, stock market moves are due either to noise or to how markets react when they reach important levels. And considering those, Amazon (NASDAQ:AMZN) and these six SPDR ETFs are telling me that the rally is over for now.For an example of noise, suppose a person deposits money into a mutual fund at the same time that another person withdraws twice as much. The traders at this mutual fund will now need buy stocks to invest the deposit. At the same time, they will need to sell twice as many shares of the same stocks to raise the funds for the withdrawal. This will cause the prices to go lower. This happens thousands of times across the world every hour of every day. You can understand how it could move the markets.Then there's the reaction the various sectors have when they get to important levels. For example, I think this rally is over for now because most of the economic sectors that make up the S&P 500 are at or just under resistance.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip In addition, the consumer discretionary sector has been one of the leaders of the recent rally and it is losing momentum. AMZN is the largest component of this sector and it is overbought and at resistance.First, we will look at some sectors and you will see what I mean. Then we'll go over levels in Amazon stock. And lastly, we will look at the SPY. Industrial Sector SPDR (XLI)The Industrial Sector SPDR (NYSE:XLI) is testing resistance at the $78.50 level. You don't need to be a Market Guru or a Master Trader to see that this level is important. It was resistance at the end of April and in early May.According to academics and random-walk believers, support and resistance levels shouldn't exist. After all, how can a basket of dozens of stocks have the same exact valuations at two very different points in time?But support and resistance levels obviously exist. You do not need to have a PHD to see them. Financial Sector SPDR (XLF)The Financial Sector SPDR (NYSE:XLF) is testing resistance around the $28 level. This level was resistance in April.During last August and September, the financial sector did not participate in the rally. That was one of the key signals that the market was nearing a major top. * 7 Dependable Dividend Stocks to Buy This shows why it is important to examine the undercurrents in the markets in order to really understand how to profit. Last summer the media was going crazy over the bull market, just like now. There was talk of melt-ups and amazing new records. However, savvy investors saw the underlying weakness in the financials and knew that this was a signal that the rally was about to end. Health Care Sector SPDR (XLV)The Health Care Sector SPDR (NYSE:XLV) has been consolidating around resistance at the $93 level and it may be starting to trend lower. The $93 level was resistance in February as well. One of the main reasons for this is that Johnson and Johnson (NYSE:JNJ) is 10% of this sector and some analysts think the company is facing some significant headwinds.JNJ just reported earnings that were better than analysts expected, and yet the stock price still dropped. This is probably because JNJ is being sued for its role in the opioid crisis, and investors are worried about the outcome. It is also being sued for allegedly selling dangerous talcum power for babies.I am not a lawyer and won't guess what the ultimate outcome of these lawsuits will be. What I do know is that even if JNJ stock is innocent of these accusations, it will still incur significant legal costs and damage to its reputation. Utilities Sector SPDR (XLU)The Utilities Sector SPDR (NYSE:XLU) has been testing resistance around the $28 level over the past month. This sector typically pays higher dividends than most others. Because of this, there has been more interest than usual in this sector due to the action of the yield curve.The yield curve illustrates the yield on bonds of all different durations. The vast majority of the time, the longer the term of the bond, the higher the rate of interest that it will pay. This is simply because the longer the timeframe, the greater the odds are that the bond will default. In order to take on this extra risk, investors need a higher return. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond When the yield curve inverts, it means that shorter-term rates are actually higher than long-term rates. This is typically an indication that traders are bearish on the economy. They do not want to hold short-term bonds. They sell, and this drives down the price and makes the interest rates go up. Then they buy long-term bonds and makes the price rise and the yield fall. Consumer Discretionary Sector SPDR (XLY)The Consumer Discretionary Sector SPDR (NYSE:XLY) has been one of the leaders of the recent rally. However, the sector is now very overbought. The last time it was this overbought was in April, and a large move lower followed. A big part of the reason for this is AMZN stock. Amazon is about 20% of this sector, and it is at resistance.If the XLY heads lower, there will probably be support around the $121 level. This because this level was resistance in April and June.What does the term "overbought" mean? It is a measure of a stock's momentum, looking at where the price is now versus where it was X days ago. When stocks reach extremes of this measurement, traders refer to it as overbought or oversold.For example, according to statistics, 95% of all trading should be within two standard deviations of the average. If a stock is trading more than two standard deviations above or below the average, it would be considered overbought or oversold. It will most likely revert back to its average. Amazon (AMZN)Amazon is overbought and testing resistance. The last two times AMZN stock was this overbought were in September and May. A large selloff followed both times. In addition, it is testing resistance around the $2020 level. There is resistance at this level because it was the top and an all-time high last September. Stocks frequently run into resistance when they get to levels that were prior tops. * 10 Stocks Driving the Market to All-Time Highs (And Why) There is also excessive bullish sentiment on AMZN. Currently, 47 Wall Street firms follow it and every single one has a buy rating on it. Excessive bullish sentiment is actually a bearish indication. This is because if everyone likes the stock, everyone has bought it. Now there are no buyers left and the only way it can do is lower. S&P 500 SPDR (SPY)The S&P 500 SPDR (NYSEARCA:SPY) is also overbought. If it heads lower, there will probably be support around the $294 level because it was a resistance level in April. Why do resistance levels become support levels? Consider the following.After hitting the resistance at $294 the SPY traded lower. Those who sold it are happy that they sold. Those who shorted it have a profit. But then the SPY rallied. Now those who sold it tell themselves that if the SPY comes back to $294, they will buy it back. Those who shorted it are now losing money. They tell themselves they will cover it at $294 and break even.Those who bought it at $294 are happy that it went higher and tell themselves that if the SPDRs come back they will buy more. Add to that the professional traders who see a clear level and want to profit from it, and now we have 4 groups of investors who want to buy the SPYs at $294.As of this writing, Mark Putrino did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post These 6 SPDR ETFs and Amazon Tell Me the Rally Is Over appeared first on InvestorPlace.
Johnson & Johnson beat the second-quarter earnings and revenue estimates but warned on competition from generics and biosimilars that could impact its third-quarter results.
While the broad U.S. equity market is pushing confidently to new all-time highs, healthcare stocks are lagging badly. The entire sector has come under pressure after President Donald Trump's effort to lower drug prices high a legal roadblock when a judge blocked a new requirement to list prices in commercials. The Trump Administration also reversed its plan to curb drug rebates for government healthcare plans.The pressure isn't slowing down, with the Health Care Select SPDR (NYSEARCA:XLV) cutting down out of a multi-week consolidation range to put an end to a three-month uptrend. This also marks a turnaround at resistance from the early December highs and sets up a decline back to the mid-April lows. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond A number of big players in the sector are lagging badly. Here are four healthcare stocks to sell now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Healthcare Stocks to Sell: Johnson & Johnson (JNJ)Shares of Johnson & Johnson (NYSE:JNJ) are dropping hard, down more than 4% on Friday as I write this and returning to lows not seen since early June. The move cuts below the stock's 200-day moving average and marks an inability to challenge the prior highs from back in December. The company continues to be dogged by legal risks related to baby powder asbestos claims.The company will next report results on July 16 before the bell. Analysts are looking for earnings of $2.42 per share on revenues of $20.4 billion. When the company last reported on April 16, earnings of $2.10 beat estimates by six cents on a 0.1% rise in revenues. Abbott Laboratories (ABT)Abbott Laboratories (NYSE:ABT) shares have fallen below their 20-day moving average for the first time since late May in what looks like the latest pullback within a secular uptrend that has been in play since 2016. Barclays analysts recently highlighted the company's impressive 7.1% organic revenue growth rate but noted very high investor expectations. Some profit taking should be expected. * 10 Stocks Driving the Market to All-Time Highs (And Why) The company will next report results on July 17 before the bell. Analysts are looking for earnings of 80 cents per share on revenues of $8 billion. When the company last reported on April 17, earnings of 63 cents per share beat estimates by a penny on a 2% rise in revenues. Intuitive Surgical (ISRG)Shares of Intuitive Surgical (NASDAQ:ISRG) are threatening to fall back below their 200-day moving average after struggling to reclaim that level after a nasty 22% decline from its mid-April high. This marks a continuation of a sideways range going back to the summer of 2018. The company is a maker of robotic surgical systems.The company will next report results on July 18 after the close. Analysts are looking for earnings of $2.87 per share on revenues of just over $1 billion. When the company last reported on April 18, earnings of $2.61 missed estimates by nine cents on a 14.9% rise in revenues. Illumnia (ILMN)Shares of Illumnia (NASDAQ:ILMN), which provides sequencing solutions for genetic analysis, is suffering a decline of more than 16% in mid-day trading after management guided second-quarter revenues below consensus estimates. Sales growth was impacted by lower than expected contributions from genomics initiatives. Shares were downgraded by analysts at Bank of America Merrill Lynch from buy to sell. Earlier this week, the stock hit an all-time high. * 7 Retail Stocks to Buy for the Second Half of 2019 ISRG stock will next report results on July 29 after the close. Analysts are looking for earnings of $1.42 per share on revenues of $885.6 million. When the company last reported on April 25, earnings of $2.56 beat estimates by 30 cents per share on an 8.2% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post 4 Healthcare Stocks That Are Feeling Sick Â appeared first on InvestorPlace.
Health Catalyst Inc. disclosed Friday terms for its initial public offering, in which the Salt Lake City-based data and analytics technology services for the health care industry is looking to raise up to $138 million. The company is offering 6 million shares in the IPO, which is expected to price between $20 and $23. The stock is expected to list on the Nasdaq Global Select Market under the ticker symbol "HCAT." With 34.1 million shares outstanding after the IPO, the company would be valued at up to $783.8 million. Goldman Sachs, J.P. Morgan and William Blair are the lead underwriters. The company estimates second-quarter 2019 losses from operations of $10.3 million to $9.3 million on revenue of $19.6 million to $20.1 million, after a loss of $18.8 million on revenue of $10.7 million in same period a year ago. The company is looking to go public at a time the Renaissance IPO ETF has gained 4.6% over the past three months, while the SPDR Health Care Select Sector ETF has advanced 3.0% and the S&P 500 has tacked on 3.3%.
The U.S. economy is putting up some impressive numbers in GDP, jobs and wages, but many pundits fear that a slowdown is pending. Trade-war fears with China and the European Union remain front and center in the news. And the yield curve is threatening to invert, meaning short-term interest rates may be moving higher than long-term rates. That's often a sign of pending recession on its own.By some measures, the current expansion is now 10 years old, making it one of the longest on record. That seems ancient, but there's no rule that says it can't continue. Australia is in its 28th consecutive year of economic growth.Even so, all good things do eventually come to an end. And for the U.S. (and for Australia, for that matter), economists are looking for slowdowns. Even the Federal Reserve has indicated it is ready to lower short-term interest rates to combat any problems that may arise.Professional investment managers may look to sell a good deal of their holdings to step aside as the market falls. However, for most individuals, timing the market by selling when conditions seem dicey, and buying back when conditions firm up, is a big mistake. Even the pros don't always get it right, and they have armies of analysts and rooms full of technology at their disposal.Here are six ways to prepare for the next stock market decline. The key is to make smaller adjustments to your portfolio to reduce risk and still be ready to participate when the market resumes its upward march. SEE ALSO: 25 Stocks Every Retiree Should Own
The Trump administration will no longer proceed with a large-scale overhaul of the drug-rebate industry. What Happened Pharmacy benefit managers (PBMs) negotiate a drug discount on behalf of health insurers ...
Shares of DaVita Inc. bounced 4.3% in afternoon trading Wednesday, after President Trump signed an executive order on kidney disease, aimed at cutting costs of dialysis treatments. The stock had tumbled 9.8% over the past two sessions in anticipation of the executive order. DaVita said late Tuesday that the Trump administration's initiatives are expected to support DaVita's investments to prevent kidney disease, encourage home kidney care and improve kidney transplantation rates. "We've been investing in capabilities to deliver holistic care that addresses our patients' needs beyond kidney disease, such as mental health, social services and nutrition," said Chief Executive Javier Rodriguez. "We will continue to work with the Administration and Congress to launch programs that address broader care opportunities." Shares of fellow dialysis services provider American Renal Associates Holdings Inc. rsoe 1.6%, after plunging 9.6% on Tuesday. Year to date, DaVita's stock has gained 6.8% and American Renal shares have plummeted 40.6%, while the SPDR Health Care Select Sector ETF has tacked on 8.1% and the S&P 500 has advanced 19.5%.
The Trump administration said if drugmakers disclose prices in TV ads costs will go down. But that may not necessarily be the case.
Shares of health companies were down Monday, with both the Health Care Select Sector SPDR Fund ETF and the SPDR S&P Pharmaceuticals ETF falling 0.6% in morning intraday trade. Shares of Cardinal Health Inc. led the losers in the S&P 500's health-care ETF, falling 3.1% after the company said CFO Jorge Gomez would leaving the company, followed by declines in shares of Incyte Corp , Alexion Pharmaceuticals Inc. , and Biogen Inc. , Regeneron Pharmaceuticals Inc. and Amgen Inc. . The dip in health-care stocks comes after President Trump's announcement Friday that he was planning to soon issue an executive order allowing the U.S. to buy drugs based on the lowest price paid by other developed countries. "Our guess is drug stocks may be initially pressured this week," Jefferies health-care trading desk strategist Jared Holz wrote in an email to clients on Sunday evening. However, "feedback already suggests investors believe the executive order, if it comes to pass, will only be relevant for a handful of drugs (those that are very significant in revenue and administered in a physician's office)... at least at the onset," he wrote. The drop in health shares comes amid a broader decline in U.S. stocks, as investors grapple with doubts about whether the Federal Reserve will still cut interest rates after a strong U.S. jobs report Friday. The S&P 500 was down 0.4% Monday morning. The index has gained 18.8% in the year to date.
With the S&P 500 and Dow at all-time highs, it's been a great year for every stock market sector, and margin debt levels have room to grow.
Health care stocks have been in a strong uptrend, but closes below several key trendlines suggest that this could change.
The Health Care Select Sector SPDR (XLV), the largest exchange-traded fund (ETF) tracking the healthcare sector, finished the third quarter on solid ground with a gain of about 3%, pushing its year-to-date gain to over 18%. What investors need to monitor in the healthcare sector going forward are valuations, which, although not alarmingly high, are creeping higher. "In aggregate, valuations in the healthcare sector have slightly increased to a price/fair value of 1.02, up from 1 at the end of the last quarter and 0.87 at the start of the year as solid clinical data and the falling risk of higher payer pressure on branded drug prices are helping drug stock valuations," said Morningstar in a recent note.
The often politically sensitive healthcare sector displayed that sensitivity in positive fashion Wednesday as a variety of exchange-traded funds (ETFs) tracking the sector surged on news that Senate Republicans are close to unveiling new healthcare legislation. On Wednesday, 15 ETFs hit all-time highs, and eight of those were healthcare funds.
Shares of Allergan PLC soared 35% toward an 8-month high in premarket trading Tuesday, after The Wall Street Journal reported that AbbVie Inc. was close to a deal to buy the pharmaceutical company. AbbVie's stock dropped 6.0% ahead of the open. The WSJ report said AbbVie would pay $188 in cash and stock for each Allergan share outstanding, which is 45% above Monday's closing price of $129.57. With 327.8 million shares outstanding as of May 3, the deal would value Allergan at about $61.6 billion. AbbVie's market capitalization as of Monday's close was $115.98 billion. Allergan's stock has declined 24.3% over the past 12 months through Monday and AbbVie shares have lost 15.7%, while the SPDR Health Care Select Sector ETF has climbed 10.8% and the S&P 500 has advanced 8.4%.
Allergan PLC said Friday that its supplemental biologics application (sBLA) for Botox for the treatment of upper limb spasticity in pediatric patients, from ages 2 to 17, was approved by the U.S. Food and Drug Administration. Botox was granted a 6-month Priority Review by the FDA. Upper limb spasticity often results in muscle tightness and stiffness, and can interfere with movement at the joints. Common causes of spasticity in children include cerebral palsy, traumatic brain injury, multiple sclerosis, spinal cord injury and stroke. Allergan said the FDA is also reviewing an sBLA for the use of Botox to treatment pediatric patients with lower limb spasticity, and expects a decision by the end of the year. Allergan's stock, which is still inactive in premarket trade, has fallen 15% over the past three months, while the SPDR Health Care Select Sector ETF has gained 1.1% and the S&P 500 has tacked on 3.5%.
Medtronic PLC said Friday it will raise its quarterly dividend by 8%, to 54 cents a share from 50 cents a share. The medical technology company's new dividend will be payable July 25 to shareholders of record on July 8. Based on Thursday's stock closing price of $99.26, the new annual dividend rate implies a dividend yield of 2.18%, compared with the yield for the SPDR Health Care Select Sector ETF of 1.51% and the implied yield for the S&P 500 of 1.95%, according to FactSet. Medtronic's stock, which is still inactive in premarket trading, has gained 9.1% year to date through Thursday, while the health care ETF has tacked on 7.8% and the S&P 500 has advanced 17.8%.
The average life expectancy will rise to 73 in 2025 from 65 years in 1995, per Global X report. Investors can cash in on the trend with these ETFs.
Yahoo Finance's Adam Shapiro, Julie Hyman, Rick Newman, and Emily McCormick join HealthPrize Technologies CEO Tom Kottler to discuss.
The White House is developing a plan that would effectively cut taxes on capital gains by changing the way they're calculated, according to Bloomberg. Grover Norquist, President of the Americans for Tax Reform, and Mattie Duppler, Senior Fellow at the NTU and board member on the Center for a Free Economy joins Yahoo Finance's Seana Smith.
Yahoo Finance's Alexis Christoforous and Brian Sozzi sit down with Nela Richardson, investment strategist at Edward Jones, and Kristina Hooper, chief global market strategist at Invesco, around Friday's opening bell. The panel discusses what to expect from the G-20, the impact of global trade pressures on the economy, earnings season, and more.